Zhong Shanshan, the founder of Nongfu Spring, has maintained his position as China’s wealthiest individual for the fourth consecutive year, despite a 9% decrease in his overall wealth to $63 billion. This drop in wealth led to a six-spot decline in his global ranking to number 21. The decrease was attributed to online scrutiny from nationalists, affecting the sustainability of Nongfu Spring water and the performance of Wantai BioPharm, another entity owned by Mr. Zhong.
Born in 1954 in Hangzhou, Zhejiang Province, Mr. Zhong’s journey to success was marked by resilience and adaptability. From humble beginnings as a construction laborer and carpenter during the Cultural Revolution, he pursued education through distance learning and eventually became a journalist and entrepreneur. His entrepreneurial ventures in various industries culminated in the founding of Nongfu Spring in 1996, solidifying his position as a prominent figure in China’s bottled water industry until 2019.
The listing of Nongfu Spring on the Hong Kong Stock Exchange in 2020 propelled Mr. Zhong to new heights, surpassing industry leaders like Jack Ma to become China’s wealthiest individual and Asia’s richest person. Despite his success, Mr. Zhong maintains a private persona, with most of his wealth stemming from his holdings in Nongfu Spring and Wantai BioPharm.
Mr. Zhong’s foray into vaccine production with Wantai BioPharm has been a significant contributor to his success. The company’s bivalent HPV vaccine, Cecolin, positioned them as China’s pioneer HPV vaccine manufacturer and the third largest globally. However, challenges arose in 2023 with increased competition and a decline in revenue, particularly from the bivalent HPV vaccine.
Despite these challenges, Mr. Zhong’s collaboration with Xiamen University has led to the development of other vaccines, including the nine-valent HPV vaccine currently in Phase III clinical trials. Wantai BioPharm’s gross profit margins from vaccine production remain promising, with Nongfu Spring reporting a 60% gross profit margin and Wantai BioPharm reaching an impressive 88% gross profit margin in recent months.
Unfolding Crisis
Mr. Zhong once expressed his intentions to focus on the water and vaccine industries as key areas for growth due to their importance for people’s health and longevity.
On the evening of March 26, Nongfu Spring revealed its 2023 performance results, surpassing forty billion yuan in total revenues for the first time with a 28.4 percent year-on-year increase.
Despite Nongfu Spring’s success in the bottled water market, Mr. Zhong continues to monitor its performance compared to Wantai BioPharm. However, the company has faced challenges following public scrutiny earlier this year, leading to a significant drop in daily sales volume and stock prices.
The controversy surrounding Nongfu Spring has escalated, with accusations against Mr. Zhong and his family, particularly his son Zhong Shuzi, who has been at the center of the storm. Reports suggest that Zhong Shuzi’s background and position within the company have fueled the controversy.
Some experts, such as former lawyer Lai Jianping, believe that the Chinese Communist Party is behind the turmoil faced by Nongfu Spring, seeking financial gain through coercion and intimidation tactics. YouTuber Jiang Feng suggests that the CCP’s motives may be linked to Wantai BioPharm’s potential financial benefits.
As the pressure on Mr. Zhong continues, it remains to be seen how Nongfu Spring will navigate these challenges in the future.
